Question : Low Price of Paddy and Pulses

(a): whether the Government is concerned about the low price of paddy and pulses and if so, the action plan prepared by the Government to provide the farmers fair prices;

(b): the details of paddy and pulses production during each of the last three years, State/UT-wise;

(c): whether the Government has prepared/formulated any action plan to increase the prices of paddy and pulses in the country and if so, the details thereof; and

(d): whether the Government has any proposal to export paddy and pulses and if so, the details thereof?

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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(a): The prices of agricultural produce are determined by supply and demand conditions in the market, quality of produce, weather condition, seasonality, availability of stocks and international prices etc.etc.. The annual average wholesale prices of the paddy and major pulses for the last three years are given below:

Table 1: Yearly Average Wholesale Prices of Paddy & Pulses
(Rs. Per Quintal)
Commodities 2017-18 2018-19 2019-20
Paddy 1694 1703 1810
Arhar Whole 4371 4377 5554
Moong Whole 5283 5559 6632
Urad Whole 5771 4977 6060
Gram 5579 4480 4652
Masur Whole 4452 4170 5003
Source: Directorate of Economics & Statistics, DoAC&FW

Contd…..2/-



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Government provides fair prices to farmers through procurement of crops of Fair Average Quality (FAQ) at Minimum Support Prices (MSP). In the case of cereals, Food Corporation of India (FCI) and other designated State Agencies provide price support to the farmers. The Government has implemented a new Umbrella Scheme “Pradhan Mantri Annadata Aay SanraksHan Abhiyan” (PM-AASHA), comprising Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and pilot Scheme of Private Procurement and Stockist Scheme (PPSS) for the procurement of pulses among others.

(b): The State/UT-wise details of paddy (in terms of rice) and pulses production during last three years is given at Annexure.

(c): Government fixes MSPs for 22 mandated agricultural crops on the basis of the recommendations of the Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors. The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of one and half times of the cost of production. Accordingly, Government has increased the MSPs for all mandated Kharif, Rabi and other commercial crops with a return of atleast 50 per cent over all India weighted average cost of production for the agricultural year 2018-19 and 2019-20. In line with the same principle, Government has recently (1st June 2020) announced the increase in MSP for all mandated kharif crops for marketing season 2020-21. The details of the MSP for paddy and pulses for the last three crop years are given below:

Table 2: Minimum Support Prices of Paddy and Pulses
(in Rs. per quintal)
Commodity 2018-19 2019-20 2020-21
PADDY (Common) 1750 1815 1868
(Grade ‘A’) 1770 1835 1888
ARHAR (Tur) 5675 5800 6000
MOONG 6975 7050 7196
URAD 5600 5700 6000
GRAM 4620 4875
MASUR (LENTIL) 4475 4800
Source: Directorate of Economics & Statistics, DoAC&FW


(d): Export of pulses is free without any quantitative restriction, while export of paddy is permitted under license subject to certain conditions.